Twitter On Pace For Best Day Since Earnings Day Meltdown

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Twitter Inc TWTR shares were trading higher by $0.74 (1.9 percent) at $37.15 in Thursday's session. It is poised to have its best day since the earnings drubbing it took on April 27. That took the issue from its April 27 close of $51.66 to $38.49 by April 29.

With no related news out on the issue, it could be a reaction to it being a counter-move to its oversold condition. Following the earnings rout, it continued to drift lower making a new low for move at $36.10 in Wednesday's session. That level coincides with its January 29 low ($36.07).

So far, it has surpassed the major resistance at the $37 level that capped all rallies for Twitter for much of last week. On the daily charts, there is no identifiable resistance until its May 20 high ($37.94).

The issue had a nice spike in volume over the last two sessions and is on pace to have another above average day. With fours hours remaining in the day, it has already traded 6.7 millions shares compared to its five-day average of 11.6 million.